Microvast Holdings, Inc. Q4 FY2024 earnings call

• Record annual revenue of $380 million, up 24% year-over-year; fourth quarter revenue was $113.4 million with a 36.6% gross margin. Overall gross margin improved to 31.5% from 18.7% year-over-year, and adjusted EBITDA was $8.6 million in Q4 2024.
• Progress on Huzhou Phase 3.2 expansion project, expecting first qualified production in Q4 2025. Recent announcements include industry-first overhaulable ME6 energy storage system, all-solid-state battery, and enhanced silicon-based cells.
• 2024 successes: highest annual revenue, backlog grew to $401.3 million, successes in global heavy industry and Korean market, customer nominations from European CV OEM, and partnerships with Zoomlion, Propel, etc. Challenges in 2024: difficult financing environment, supply constraints, increased competition in APAC, addressed with strategic cost control and operational adjustments.

In 2024, EMEA revenue increased to $187.7 million, a 123% year-over-year growth, accounting for almost half of total revenue. US revenue rose 360% year-over-year from $3.1 million in 2023 to $14.4 million in 2024, contributing 4% of total revenue. Asia Pacific revenue declined from $219.1 million in 2023 to $177.7 million in 2024, a 19% year-over-year decrease, aligning with strategic repositioning away from low-margin segments in China and India.

• Expect 2025 revenue to increase 18% to 25% year-over-year, range $450 million to $475 million, and aim to maintain a gross margin target of 30%.
• Huzhou Phase 3.2 expansion project anticipated to come online in Q4 2025, providing up to 2 gigawatt hour per year of additional production capacity.
• EMEA business expected to continue driving significant revenue increases, and Americas segment anticipated to grow revenue in 2025.

• Difficult financing environment.
• Supply constraints.
• Increased competition in APAC region, especially with lower-priced LFP options.